Column: Reform of nuclear energy legislation to streamline regulation and prepare the ground for future projects

Finland is known as a country of responsible use of nuclear energy. Safety comes always first. Responsibility includes ensuring the funds required for nuclear waste management and for the decommissioning of facilities. An extensive legislative reform is, however, required to streamline regulation and licensing. The reform process is also driven by the need to take account of new technologies and the profitability challenges of the sector. The draft proposal for the new legislation is undergoing a round for comments until 25 August 2025.

It is for many reasons obvious that the use of nuclear energy requires a strong set of regulations. The safety of nuclear facilities is an absolute priority and calls for both strict liability of operators as well as appropriate safeguards and supervision. Nuclear waste management in turn requires an exceptionally long-term approach and responsibility so as not to burden generations to come. International treaties and agreements alone impose on us the obligation to prevent the proliferation of nuclear weapons and material.

The current Nuclear Energy Act was enacted in 1987. Despite numerous amendments and supplementary provisions, the Act is clearly in need of reform. It is important to note that the overall reform also means a very extensive update and streamlining of subordinate statutes and of regulations issued by the Radiation and Nuclear Safety Authority (STUK). The current number of detailed requirements issued by STUK totals around 7,800, whereas their future number is likely to be around 1,200.

This means the reform will be a major effort for the Ministry as well as for STUK, which has tackled the regulations process in a commendable manner. An extensive reform also takes time: the project was already launched during the previous electoral term. Prime Minister Petteri Orpo’s Government has set the clear objective of swiftly reforming the Nuclear Energy Act. It is therefore important that the regulatory streamlining has broad political support. The role of nuclear energy as a clean source of energy is currently very broadly recognised.

What will change and what will remain the same?

In the existing Act, the licence system for nuclear facilities boils down to three decisions made by the Government: the decision-in-principle concerning the facility project, the construction licence and the operating licence. This division will remain in place, but overlapping and multiple assessments will be reduced, taking account of the environmental impact assessment of the project and, the detailed assessment of nuclear safety carried out by STUK. The construction licence and the operating licence for a nuclear  facility intended for the processing and storage of nuclear material or low/medium level nuclear waste would, in the future, be granted by STUK.

The decision-in-principle is based, above all, on the overall good of society. Following the reform, the decision-in-principle would be more general than at present and, for smaller projects, the decision would be made by the Ministry of Economic Affairs and Employment rather than the Government – but where to draw the exact line is still being considered. A resolution in favour of a project would be submitted to Parliament as a report, and Parliament would no longer make an administrative decision on it as is currently the case.

The actual licence system would be made modular, which means more agile assessment and approval of constituent elements. In this respect, more powers would be transferred from the Government to STUK, especially in technical matters concerning facility safety. On the other hand, the Government could, expressed in more specific terms, take into account that the ownership of the licence applicant does not affect the security of supply or reliable use of energy.

The operating licence of a nuclear facility and any licence extension would be more clearly tied to safety. Licences granted by the Government will in any case have the overall good of society as the key criterion in the future, too.

Nuclear waste generated in Finland would still have to be disposed of in Finland and, except for minor quantities, nuclear waste generated elsewhere could not be disposed of in Finland. This is important for reasons including the sustainable arrangement of funding for nuclear waste management: the funds required are collected in Finland to the National Nuclear Waste Management Fund. At the same time, the intention is to permit the temporary processing and storage of foreign nuclear waste in Finland, for example for the purpose of selling the services of an encapsulation facility for spent nuclear fuel.

The reform will take into account new technologies and facility concepts, such as small modular reactors (SMR). Modular progress in facility construction will be enabled. It is quite likely that facility projects for heat production or combined heat and power production will proceed in Finland.

The draft legislative proposal also contains a lot of other amendments and specifications. The Nuclear Energy Act itself would have ca. 500 sections. At the same time, several other acts, such as the Radiation Act, the Criminal Code and the Pressure Equipment Act, would be amended. Regulation such as that relating to mining and milling operations related to nuclear material (uranium and thorium) would be updated.

The draft proposal currently undergoing a round for comments will be produced into a government proposal by the end of the year. Following consideration by Parliament, the Act is intended to enter into force on 1 January 2027.

The prohibition of nuclear explosives remains in its existing form in the draft. The matter will be assessed at a later date under the leadership of the Ministry of Defence in conjunction with the update of regulation concerning military explosives.

Future of nuclear energy affected by many aspects

The streamlining of legislation and regulation will facilitate nuclear facility projects in a significant way. It is, however, indisputable that the relative competitiveness of nuclear power in relation to renewable energy sources has declined and, for example, Sweden is preparing support and funding solutions. In Finland, the Ministry of Economic Affairs and Employment is currently commissioning a report on the options, costs and electricity market impacts of promotion of nuclear energy production.

European Union regulations for their part play a key role so that nuclear energy is treated equally in relation to other clean energy sources. This has not always been the case, as seen in contexts such as the EU taxonomy for sustainable finance. 

The second Commission of Ursula von der Leyen has adopted a more equal stance. Making it concrete will, however, require several regulatory changes, such as the definition of ‘low-carbon hydrogen’, which is currently being worked on. Finland is actively promoting a technology-neutral approach.

The predictability and permanence of regulation are essential points nationally as well as for the European Union. Without these, investments in facilities to be used for decades may involve unreasonable risks.

Riku Huttunen, Director General, Energy Department, Ministry of Economic Affairs and Employment